TeraWulf completed a private offering of $1.025 billion in 0.00% convertible senior notes due 2032 on Friday, October 31, 2025, generating $999.7 million in net proceeds after discounts and commissions. The offering included an option to purchase an additional $125 million of notes.
The company will use the proceeds to construct a data‑center campus in Abernathy, Texas, and for general corporate purposes. The notes are convertible at the company’s election into cash, shares, or a combination, and were sold to qualified institutional buyers under Rule 144A in a private offering.
The financing supports TeraWulf’s strategic pivot from Bitcoin mining toward high‑performance computing and artificial‑intelligence hosting. In Q3 2024, the company reported revenue of $27.1 million, up 42.8% year‑over‑year, and adjusted EBITDA of $6.0 million, a decline of 33.6% from $9.0 million in Q3 2023. For the full year 2024, revenue increased 102% to $140.1 million versus $69.2 million in fiscal 2023. Management cited growing demand for AI compute and the need to invest in infrastructure to capture that market.
The Abernathy campus is part of a joint venture with Fluidstack, backed by Google, to build a 168 MW AI compute facility. The new capital raise follows an August 2025 upsized convertible notes offering of $850 million and a $3.2 billion offering of 7.75% secured senior notes, underscoring the company’s aggressive funding strategy to support its expansion.
TeraWulf’s shift into AI and HPC places it in competition with other former Bitcoin miners such as Marathon Digital, Riot Platforms, and CleanSpark, all of which are re‑rating their businesses based on AI exposure. The company expects the new data‑center investment to drive future revenue growth and diversify its revenue mix beyond cryptocurrency mining.
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